Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Health Care & Wellness Committee

E2SSB 5267

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Developing standardized prior authorization for medical and pharmacy management.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Becker, Keiser, Conway, Ericksen, Bailey, Dammeier, Frockt and Schlicher).

Brief Summary of Engrossed Second Substitute Bill

  • Creates a work group to develop criteria to streamline the prior authorization process for prescription drugs, medical procedures, and medical tests.

Hearing Date: 3/26/13

Staff: Jim Morishima (786-7191).

Background:

Prior authorization is the requirement that a health care provider seek approval of a drug, procedure, or test before seeking reimbursement from an insurer. Health carriers and other payors use a variety of different forms for different services.

Pursuant to legislation passed in 2009, the Office of the Insurance Commissioner (OIC) designated a lead organization (OneHealthPort) to develop processes, guidelines, and standards to streamline heath care administration. The OIC and OneHealthPort facilitated a work group to develop best practice recommendations, including best practice recommendations on prior authorization. The best practice recommendations on prior authorization include recommendations on browser-based prior authorization requests, standard notification timelines, and extenuating circumstances around prior authorization.

Summary of Bill:

A work group is established to develop criteria to streamline the prior authorization process for prescription drugs, medical procedures, and medical tests, with the goal of simplification and uniformity. The work group is co-chaired by the chair of the House Health Care and Wellness Committee and the chair of the Senate Health Care Committee. Members of the work group are determined by the co-chairs and may not exceed 11 members.

The work group must examine elements that may include:

The work group must:

Appropriation: None.

Fiscal Note: Requested on March 14, 2013.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.